Recent cryptocurrency news from Latin America highlights diverse approaches, with Argentina facing a fintech setback, Brazil considering a Bitcoin reserve, and El Salvador planning tokenized investments for SMEs. These moves reflect ongoing experimentation in regional crypto policy and finance. Lawmakers in Argentina revoked a proposal for digital wallet salary deposits, while Brazil eyes tax exemptions and reserves.
Fintech setback in Argentina
A proposed labor reform in Argentina that would have allowed employees to receive salaries directly in digital wallets was initially welcomed by the fintech sector. However, lawmakers removed the clause during discussions, a move interpreted as favoring traditional banks. President Javier Milei's party agreed to the elimination to secure broader support for the law. Currently, employees must receive pay through conventional bank accounts.
Despite this, digital wallet usage has surged, driven by limited access to traditional financial services. A 2022 central bank survey shows only 47% of Argentines have a bank account, amid historical mistrust from events like the 2001 'corralito,' high inflation, and fund access restrictions. Platforms such as Mercado Pago, Modo, Ualá, and Lemon have become key entry points to digital finance for many.
Brazil's potential Bitcoin reserve and tax changes
In Brazil, a report to the Chamber of Deputies Economic Development Committee proposes significant shifts in cryptocurrency regulation. Presented by Congressman Luiz Gastão as rapporteur for Bill 4,501/2024, the plan includes eliminating taxes on crypto gains and creating a Sovereign Strategic Bitcoin Reserve (RESBit). The government could acquire Bitcoin up to 5% of foreign exchange holdings, managed by the Ministry of Finance and Central Bank using cold wallets.
The proposal also repeals requirements for registering crypto transactions and allows federal tax payments in Bitcoin. It positions Bitcoin as a reserve asset supporting Brazil's digital currency, the Drex, with full income-tax exemptions on gains from digital assets.
El Salvador's tokenized investment initiative
El Salvador's Corporación Infinito (COIN) and Stakiny have allied to channel $100 million in foreign direct investment to local SMEs by 2026. The initiative uses tokenized equity instruments via blockchain to connect businesses with global investors. Antonio Arrué, COIN vice president, stated the project aims 'to draw in institutional investors and foreign money seeking to use digital investment methods to contribute to the expansion of Salvadoran firms.'
Stakiny's platform, pending approval from the National Commission of Digital Assets, will handle tokenization on an EVM-compatible network, accessible via mobile wallets with biometric authentication. It enables real-time management of cap tables, dividends, governance, and secondary trading.
